What discord over readiness means to taxpayers
It doesn’t look good for anyone who was hoping to ride the Confederation Line LRT by the end of April.
The public learned this week there’s a disagreement about the March 31 handover deadline of the $2.1-billion LRT system from the Rideau Transit Group to the City of Ottawa. RTG, the builder, thinks it can deliver a fully completed, safe transit system by then. The city doesn’t believe it.
So where does that leave taxpayers and OC Transpo customers who have been waiting for six years while the rail line is being constructed? Here’s what we know and don’t know.
Q. If RTG doesn’t deliver the LRT system by March 31, when will it?
A. No one knows yet. For sure, though, the public would need even more patience. When RTG missed the Nov. 2, 2018 handover, it had 60 days to propose a new date. If RTG doesn’t deliver on March 31, it might not be until the end of May that the city knows when the consortium will try again. A new handover date must be at least a month after the last handover date. It’s up to RTG, not the city, to propose the handover date.
Q. What’s the main problem with RTG being challenged to meet the March 31 deadline?
A. The trains. Ten of them are still far behind being ready for operations. Technicians are working on deficiencies. The city needs all 34 train vehicles for operations on Day 1. Without the full fleet, a comprehensive test of the LRT system can’t be accomplished before the keys are turned over to the city.
Q. Can the city just accept some of the LRT system in the meantime and start running it, say, in the east end where construction is advanced? A. No. The city says it won’t accept a partially completed transit system.
Q. Is the city still incurring extra costs because of the LRT delay?
A. Yes. Buses are still following detours because the Transitway has been converted to rail. As long as the detours are still happening, the costs will add up. The city’s extra expenses totalled $25 million as of early December 2018. The city is billing RTG for the overruns, but RTG is resisting the city’s claim that the builder should pay up. The dispute will land in court if it can’t be resolved in mediation.
Q. Is RTG being penalized for not meeting the deadlines?
A. Yes. The builder faces a $1-million penalty if it doesn’t deliver the transit system on March 31, just like it did when it missed the Nov. 2, 2018 deadline. However, a penalty under the project agreement didn’t apply to the first missed deadline on May 24, 2018.
Q. Is there any silver lining to LRT being delayed again?
A. Somewhat. Because this winter has been punishing, RTG can test the LRT system in extreme conditions. Bus drivers who have been expecting to be laid off at the start of LRT can keep their jobs a bit longer. The city could save a bit of money from not having to maintain the LRT system if it actually recoups the $25 million in overruns from RTG. And, Transpo has even more time to fine-tune their marketing and communications for LRT.
Q. How will the city’s experience with RTG affect their long-term relationship?
A. To be determined. RTG, through its Rideau Transit Maintenance arm, will be responsible for maintaining the LRT system for 30 years after it’s finally up and running. The faces at RTG and city hall will change, probably several times, over 30 years, so the trials and tribulations of 2018-2019 could be long forgotten. For now, Peter Lauch, the CEO of RTG, and John Manconi, the city’s general manager of transportation, seem to have a decent working relationship.
Q. SNC-Lavalin is one of the partners of RTG. Considering all the hubbub on Parliament Hill regarding the company, is city hall concerned?
A. It doesn’t appear so. Mayor Jim Watson said city staff haven’t flagged any problems working with the firm. SNC-Lavalin, operating under the name TransitNEXT, is also one of three shortlisted firms vying for the Trillium Line expansion contract under the city’s Stage 2 program. The city expects to recommend contract awards for the Confederation Line LRT and Trillium Line expansions on Feb. 27.
Q. How long has LRT construction been going on?
A. About six years. Council approved the contract with RTG in December 2012. Construction started the next spring. The transit system was originally expected to open around mid-2018.
Q. How does a Stage 1 delay affect the start of construction for Stage 2?
A. Watson says construction on Stage 2 will still begin this year. The Trillium Line expansion is the likely candidate to get started sooner since only the transit station at Bayview has a direct link to Stage 1 construction.